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Main article: Pensions in Russia
Pension savings
2021: NPFs invested 264 billion rubles or 7% of the total portfolio in deposits and securities of related banks
Non-state pension funds in 2021 invested 264 billion rubles in securities and deposits of related banks. Pension funds of citizens - more than 7% of the total portfolio of funds.
The record holder was NPFs of the Gazprombank group, which had 127 billion rubles of such investments. (11.4% of the portfolio). In particular, Gazfond for more than 80 billion rubles. owns Gazprombank shares. Gazfond Pension Savings owns Severgazbank worth 7 billion rubles. In addition, these two funds invested more than 33 billion rubles in the bonds of GPB itself. Included in the group of NPF "Diamond Autumn" placed deposits in the same bank for 1.9 billion rubles.
2020: NPFs lost 37 billion rubles of Russian savings on the exchange in Q1 due to the COVID-19 epidemic
The sale on the Moscow Exchange in March 2020 against the background of falling oil prices and the devaluation of the ruble hit the portfolios of non-state pension funds managing citizens' money in the amount of almost 3 trillion rubles.
Due to "market volatility," pension savings at NPFs in the first quarter of 2020 decreased by 1.3%, to 2.822 trillion rubles. In monetary terms, funds lost 37 billion rubles. Their pension reserves fell by 2%, or 28 billion rubles, to 1.386 trillion rubles.
The most significant blow was the fall in the value of shares - by 14.4%, to 151.8 billion rubles. Against the background of the collapse of quotations, the funds went to fix losses, selling cheaper shares and transferring funds to less risky instruments - in particular, to debt securities, including as part of repo transactions.
The volume of reverse repo operations increased sharply - by 21.7%, to 165.8 billion rubles: NPFs sold securities with an obligation to subsequently redeem.
Negative market factors influenced the investment portfolios of NPFs much less than in financial markets as a whole, the Central Bank emphasizes. Thus, the Moscow Exchange index for the quarter sank by 17.6%, and the RGBI index, which tracks the prices of government bonds, - by 2.4%.
This is due to the predominance of debt instruments (corporate bonds and OFZs) in portfolios. A little more than a quarter of them (27.8%) are held by funds to maturity, which is why they are not valued at the market, but at amortized cost.
Profitability of NPF
2023: The Bank of Russia named the profitability of pension savings of NPFs
The weighted average profitability of pension savings of non-state pension funds (NPFs) at the end of 2023 amounted to 9.9%, pension reserves - 8.8%. The Bank of Russia announced this on April 16, 2024.
As the regulator notes, the profitability of most NPFs in 2023 exceeded inflation (amounted to 7.4% at the end of 2023).
It also follows from the materials of the Central Bank of the Russian Federation that in 2023 the weighted average return on investment of pension savings, reflecting the results of investment in the accounts of insured persons, reached 7.8%.
The Russian Central Bank also notes that NPFs in the fourth quarter of 2023 showed a weighted average yield (1.7% on pension savings and 1.2% on pension reserves) lower than in the previous three months (in July-September 2023 there were 1.9% on savings and 1.8% on reserves), which is due to negative revaluation of shares and corporate bonds in portfolios. The income of NPFs was provided mainly with coupons on debt securities, the regulator explained.
It is also noted that 18 out of 27 funds operating under OPS (compulsory pension insurance), and 20 out of 35 funds operating under NGOs (non-state pension provision), at the end of 2023, showed profitability above inflation.
According to the Central Bank, half of the Russian non-state pension funds (NPFs) by mid-April 2024 became operators of the long-term savings program (PDS). In January 2024, the regulator registered the rules for the formation of long-term savings (FDS) of Sberbank NPF, eight funds of the pension division of the Region group of companies (GC) (NPF Evolution, Future, Worthy Future, Bolshoi, Telecom-Soyuz, OPF named after V.V. Livanova, Perspektiva, Federation), as well as NPF Professional[1]
2022: The most profitable NPFs in Russia named
At the end of 2022, the profitability of the largest non-state pension funds in Russia did not exceed inflation. This is stated in the study of the newspaper "Vedomosti," the results of which were published on May 17, 2023.
Only those NPFs whose savings and reserves collectively exceed 10 billion rubles are taken into consideration. The data of the Bank of Russia indicate that in 2022 the fund Surgutneftegas"" became the most profitable: it showed a result of 8.21% per annum. In second place is Alliance NPF "" with an indicator of 7.89%, and closes the top three "Gazprombank-fond" - 7.83%.
In the banking segment, the pension fund VTB showed a yield of approximately 3.46% per annum, "" Sberbank- 2.42%. The result of two funds "" Gazprom- structures "" and Gazfond"" Gas Fund Pension Savings- amounted to 2.41% and 2.37%, respectively. At the same time, as noted by Vedomosti, only AtomgarantRetirement solutionsWelfare the profitability of reserves minus remuneration is indicated for NPF Gazprombank fund, "", "", "" and "Gazfond," since they do not have pension savings.
The distribution of cash and financial instruments in the asset structure of the largest NPFs practically did not change during 2022. Thus, cash resources accounted for 0.3%, financial instruments - 97.8%. Another 1.9% was receivables.
The study notes that the results of investment of NPFs in 2022 were below inflation, the level of which was recorded at around 11.9%. For comparison: in the period from 2017 to 2021, NPF investment indicators outstripped inflation: for example, the average annual yield during the specified interval was 5.4% before the payment of remuneration, and pension reserves - 5.8%, while inflation was at around 4.6%.[2]
2020
NPF yield amounted to only 4.7%
The weighted average yield of the top 10 NPFs on compulsory pension insurance, before the payment of remuneration to the fund managers, in 2021 amounted to 4.7% per annum, while inflation reached 8.4%.
This is less than a bank deposit or income from government bonds.
The pension system of Russia is one of the worst in the world in terms of profitability. NPFs bring losses
The mandatory contributions paid by citizens of the Russian Federation exceed the average level for OECD countries (34 countries are included). And soon Russia will enter the top 3 in terms of mandatory payments (26%) to the pension system, second only to Italy (33%) and Switzerland (27%).
At the same time, the size of pensions is twice as far behind the indicators of other states, and the funded part of the pension, which is managed by non-state pension funds, burns out in inflation.
According to the OECD, over the past five years, the average real profitability of pension funds in Russia was minus 0.7% per annum. In other words, instead of profit, NPFs received a loss if they take into account accumulated inflation. The situation is worse only in Nigeria and Turkey. By comparison, in Australia, on average, pension funds brought in 6.7%, in Canada - 4.7%, and in Israel - 4.2%.
The pension system in Russia does not allow maintaining a decent standard of living for most of the pensioners, who immediately find themselves in poverty when leaving work.
2018: NPF yield. Table
2012: 7-year yield below inflation
In 2012, the Pension Fund of the Russian Federation considered that the profitability of pension savings of citizens in previous years is lower than inflation. From 2004 to 2011, the insurance part of the pension grew by 337 percent, and accumulated inflation was 215 percent. At the same time, pension savings of citizens managed by VEB increased by only 149 percent, and NPFs - by 159 percent[3].
In addition, according to the calculations of the FIU, in 2020 the share of the funded part in the pension will be about 1.8 percent, and by 2040 - 18 percent. At the same time, about 27.3 percent of insurance premiums are already spent on the funded part.
NPF remuneration
2020: NPFs received remuneration for 55 billion rubles
At the end of 2020, non-state pension funds received remuneration for 55 billion rubles. on compulsory pension insurance. The profitability of the pension business for 2019-2020 amounted to about 47%. Comparable excess profits are received by commodity companies at the peak of price growth.
2019: NPF commissions amounted to 60 billion rubles
Non-state pension funds (NPFs) received 60 billion rubles in 2019 for managing savings. That's double 2018.
At the end of 2019, for the management of pension savings, the variable part of the remuneration (success fee) of the NPF amounted to 31.3 billion rubles, the permanent part of the remuneration (management fee) - 28.3 billion rubles. In 2018, the total income of NPF success fee was 12.6 billion rubles, and management fee was 20.5 billion rubles (Kommersant).
The profitability of NPFs from investment to remuneration payments in 2019 amounted to 10.5% per annum. The funds seized part of the profitability from customers - 2.3% of the investment income received. And they left customers with an 8.2% yield. In customer losses, funds and their owners do not participate and post it to accounts, although the law obliged them to reimburse them.
In the world of pension funds, pensioners are paid success fee or management fee. The Central Bank and the Ministry of Finance believe that both commissions can be received from future pensioners in Russia at once. Moreover, the management fee itself in large pension funds in Scandinavia is almost twice as low. In Russia, NPFs have no space costs or expensive managers with Nobel prizes.
Moreover, pensioners pay twice for management - the owners of NPFs also receive hidden types of income - another 10 billion rubles went to their management companies, which (by 80-90%) belong to the owners of NPFs, plus payment of commissions often to their own broker, depository. But the NPF income chain does not end there - the same management companies invest in the projects of NPF owners and play the role of their treasury.
The large amounts of income of NPF owners can be explained by corruption ties in the government, the Central Bank and the State Duma.
NPF Data Protection Standard
Main article: Industry standard for personal data protection (PD) for non-governmental pension funds (NPFs)
Chronicle
2024
Alfa Group created its own NPF
Alfa Group launches its own non-state pension fund (NPF). This became known on August 8, 2024. Read more here
Sovcombank created its own NPF
In June 2024, Sovcombank announced the creation of its own non-state pension fund (NPF). This step is part of the bank's strategy to enter the pension business, which was confirmed by the first deputy chairman of the bank's board, Sergei Khotimsky. Read more here.
Renaissance Insurance created its own NPF
On June 17, 2024, Renaissance Insurance announced the creation of its own non-state pension fund (NPF) called Renaissance Accumulation. The move aims to get the group involved in a long-term savings program for the public with government support. Read more here.
Tinkoff has created its own NPF
In early April 2024, it became known that Tinkoff had created its own non-state pension fund (NPF). It was named "Tinkoff Pension," according to the data of the Unified State Register of Legal Entities (Unified State Register of Legal Entities). Read more here.
2023: How many Russians keep their pension in NPFs
The number of non-state pension funds (NPFs) operating by the end of 2023 in Russia reached 37. At the end of 2023, the number of participants in the voluntary pension system increased by 0.2%, to 6.3 million people, including 1.5 million Russians (-1.3%), who are recipients of a non-state pension. This is stated in the report of the Central Bank of the Russian Federation, published in March 2024.
According to the regulator's statistics, the total volume of NPF assets in the third quarter of 2023 reached 5.33 trillion rubles (+ 7.8% on an annualized basis), NPF capital - 917.4 billion rubles (+ 39.4%), net profit - 378.2 billion rubles (+ 158.3%).
By the end of 2023, the investment portfolio of pension funds of NPFs reached 5.162 trillion rubles, including a portfolio of pension savings of 3.32 trillion rubles, a portfolio of pension reserves of 1.84 trillion rubles.
The volume of pension payments for non-state pension provision for 2023 amounted to 107.2 billion rubles, rising by 6.2% compared to 2022. By the end of 2023, the number of insured persons forming their savings in funds decreased by 0.8%, to 36.3 million people, of which 776.5 thousand people received a pension during the reporting period (their number increased by 29.8% compared to 2022).
The volume of pension payments for compulsory pension insurance in 2023 increased by 26.5% and reached 51.4 billion rubles. The main share of pensions in 2023 fell on lump sum payments (81.6%, or 42 billion rubles).
As of the end of December 2023, 28 NPFs were participants in the system of guaranteeing the rights of insured persons. The total size of the pension savings guarantee fund amounted to 8.6 billion rubles. The total size of the pension reserve guarantee fund is estimated by the Central Bank at 879.8 million rubles.
2022: The number of Russians who transferred from the FIU to the NPF reached a historic minimum in a year
Level of transitions from the Social Fund of Russia (EMF; until 2023 - the Pension Fund of Russia) in non-state pension funds (NPFs) in 2022 fell to 9.2 thousand people, according to data from the Bank of Russia. This is the minimum figure for the history of calculations. The previous record low number was recorded following the results of the 2020 transition campaign (then 15.8 thousand citizens returned to the FIU), Frank Media notes.
According to analysts of NPF Evolution, having studied the structure of payments of pension funds, NPFs in 2022, within the framework of compulsory pension insurance (OPS), paid 40.7 billion rubles to customers and their successors. This is 72% more than in 2021.
 | The increase in payments is caused by several factors. One of the main ones is the number of people who have reached retirement age in the portfolio of NPF clients. In addition, the number of those who receive a pension early due to various benefits is also growing. The trend towards an increase in pensioners and the volume of payments in the near future will continue, - explained Elena Tetyunina, general director of Evolution NPF. |  |
According to experts, the top 10 regions whose residents received the largest amount of payments included: Khanty-Mansi Autonomous Okrug (2.7 billion rubles), Sverdlovsk Region (1.8 billion rubles), Bashkiria (1.5 billion rubles), Tatarstan, Moscow Region and Krasnoyarsk Territory (1.4 billion rubles each), Moscow (1.3 billion rubles each), Murmansk and Chelyabinsk Regions (1.1 billion rubles each) and Kemerovo Region (1 billion rubles).
According to the Bank of Russia, in 2022, the total number of insured Russians forming their savings in NPFs decreased by 0.7% to 36.6 million people, of which 597 thousand received pension payments during the reporting period.
OVERVIEW OF KEY INDICATORS OF NON-GOVERNMENTAL PENSION FUNDS
2020: 2.1 million people of retirement age did not apply to NPF for payment of funded pension
In 2020, according to the 15 largest NPFs, almost 2.1 million people of retirement age did not apply for a funded pension and it was not assigned to them. A year earlier, there were about 1.6 million such citizens. According to the reporting of the funds, most of these persons were in NPF Otkritie (605 thousand), Future (almost 419 thousand), Gazfonde Pension Savings (319 thousand), Sberbank NPF (157.2 thousand). Citizens are not informed that pension grounds for a funded pension come before the grounds for insurance. And it is beneficial for NPFs that no one takes the money.
Notes
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